Price sensitivity is also impacting the number of entrants, according to a July 1 Bloomberg Intelligence report, which found fund debuts could drop 10% this year from a three-year average of 250.
It’s natural to see a pullback in new products following years of growth, according to Phil Bak, chief executive officer of Exponential ETFs.
“There was a feeling in the last five years of a gold rush, with a lot of people rushing into the space,” he said. But “you want to invest in something that the asset manager really stands behind.”
This article was provided by Bloomberg News.